Want to Leave the U.S.? You May Have to Pay These Taxes

Want to leave the US

When you leave the U.S. to live in another country, you essentially have two choices from a tax perspective, both of which can cost you a pretty penny.  First, you can simply leave the country and take up residence elsewhere. But if you choose this option, beware: the U.S. continues to tax you on your […]

Defining “Real Estate Investor” and “Real Estate Dealer”

Real Estate Tax Planning

I have great news! You can have in your real estate portfolio both investor and dealer properties. This distinction is significant for tax purposes.   Here’s a snapshot of the potential tax differences:   Suppose you profit $90,000 from a property sale:   As a dealer, your tax could be up to $46,017 if you’re […]

Act Now! Get Your Safe-Harbor Expensing in Place

Safe Harbor for business

For 2024, you can elect the de minimis safe harbor to expense assets costing $2,500 or less ($5,000 with audited financial statements or similar). The term “safe harbor” means that the IRS will accept your expensing of the qualified assets if you properly abided by the safe harbor rules. The de minimis safe harbor, when […]

Test Your Tax IQ: Deducting More Than One Business Vehicle

Business tax planning

Contrary to popular belief, the IRS does not limit business owners to claiming deductions on only one business vehicle. You might maximize tax benefits by using multiple vehicles for business purposes. This is particularly true when you use the vehicles predominantly (more than 50 percent) for business,  you drive more business miles than your spouse, […]

Claim Your Overlooked 2020 COVID Sick and Family Leave Credits

COVID Sick and Family Credits

I am writing about potential COVID-19 sick and family leave tax credits you may have overlooked on your 2020 tax return. You might be eligible for up to $15,110 in tax credits, and the good news is it’s not too late to claim them. If you’re self-employed or running a corporation, there’s a chance you […]

It’s Not Too Late: Qualify Now for Your 2020 and 2021 ERC Money

Smiling,Businesswoman,In,Her,Office

I am writing about a significant opportunity for your business to qualify for the Employee Retention Credit (ERC).  As we are in 2023, you still have the chance to qualify for the ERC for the 2020 and 2021 calendar years and potentially recover a substantial amount of money. The ERC is a refundable tax credit […]

Estate Planning for the Rest of Us

Estate Planning

You need an estate plan, regardless of whether or not you are among the ultra-rich. As recent news has shown, even those who have won the lottery or have substantial wealth can fall victim to poor estate planning. While federal estate taxes may not concern you, you need a will to have your wishes honored […]

Uncertain Tax Position? File Form 8275 to Avoid Penalties

Uncertain Tax Position

Are you considering a bold tax position that may significantly reduce your taxes? If approved by the IRS, it’s a win. But if disapproved, be prepared to face a considerable tax penalty. The IRS imposes a 20 percent penalty for substantial tax underpayment. For instance, if the IRS finds you underpaid your taxes by $50,000, […]

Tax Credits for Electric Vehicles: The Latest from the IRS

Tax Credits for Electric Vehicles

The IRS recently issued new guidance on electric vehicles. There are four ways you can potentially benefit from a federal tax credit for an EV you place in service in 2023 or later:  Purchase an EV, and claim the clean vehicle credit. Lease an EV, and benefit from the lessor’s EV discount. Purchase a used […]

Business Gym for Your Employees and Maybe You Too

business-gym

I know you have been thinking about employee fitness and possibly a gym or other athletic facility. To be tax deductible, your gym or other athletic facilities must be primarily for the benefit of your employees—other than employees who are officers, shareholders, or other owners who own a 10 percent or greater interest in the […]

Take Advantage of the Once-in-a-lifetime IRA-to-HSA Rollover

HSA

Health Savings Accounts (HSAs) are designed for use alongside high-deductible health plans, assisting you in covering your medical expenses. They can also function as an incredible retirement account due to their triple tax benefit: You can deduct contributions from your taxes. Your account balance grows without being taxed. Withdrawals for medical expenses are tax-free. And […]

Don’t Expose Yourself with Improper Use of the $75 Rule

2022 TAX RETURN FILING

The $75 rule applies to certain business expenses where you do not need a receipt. But I emphasize that this rule does not apply to all tax deductions. Many taxpayers mistakenly apply the $75 rule to all their tax deductions, which can result in a significant loss of deductions and penalties. I encourage you to […]